In international finance, can you explain the risk involve for both importer and exporter and provide one example how these two parties experience the pros and cons.
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In international finance, can you explain the risk involve for both importer and exporter and provide one example how these two parties experience the pros and cons.
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- Which of the following is the risk due to exchange rates? Business risk Financial risk Market risk Interest rate risk Purchasing power risk Exchange rate riskConsider risk mitigation strategies while analyzing foreign financial statements.The risks below faced the financial institutions: Off-Balance-Sheet Risk Market Risk Foreign Exchange Risk What causes these risks, and How to mitigate them? I understand these risks are interdependent on each other.
- What is currency risk with practical example ?A foreign currency loan is a typical example for O a. Currency Risk O b. Interest rate risk O c. Translation Exposure O d. Transaction ExposureCompare the strategies of pooling risk and diversification as methods of reducing the risks of international lending.
- Explain the need for and problems associated with forecasting foreign exchange rates.Is it true that both sovereign and country risks are important risk factors, especially for international banks, and they are highly correlated meaning that when sovereign risk is high country risk will be high too?How do you determine and calculate return and risk on foreign exchange transactions?
- What is sovereign risk and what is the difference between rescheduling and repudiation? What is total debt service ratio and how is it calculated? Find the total debt service ratio of a country. See if you can also find an example of a country, or countries, that Western banks currently have exposure to.What risk is due to changes in the level of interest rate in the economy and may affect industries at the same time? a.systematic risk b. inflation rate risk c.foreign exchange rate risk d.interest rate riskWhat do you know about arbitrage opportunity? Discuss with examples. Also, present a scenario of any type of international arbitrage if possible. If so, how would it be executed and how would market forces be affected? Does arbitrage opportunity destabilize foreign exchange markets?